The 5p cut starts its long goodbye
The temporary 5p-per-litre fuel duty cut has been living on borrowed time since the Autumn Budget 2025, which extended it only to 31 August 2026 and set out a staged reversal to follow. That makes the fuel duty increase in September 2026 the first real move on pump taxation in years: on 1 September, duty on petrol and diesel rises by 1p to 53.95p per litre.
On its own, a penny a litre is close to invisible on a single fill. The point is what it starts. This is not a one-off adjustment but the opening step of a published timetable that takes duty all the way back to its pre-2022 rate within six months — and then keeps it rising every year after that.
With the change only weeks away, drivers are reasonably asking what it actually adds to petrol and diesel prices. The short answer: very little in September, noticeably more by next spring, and permanently more from 2027 onwards.
The fuel duty timetable from September 2026
The reversal arrives in three steps, according to RAC and Fuelwise analysis of the Budget decision:
- 1 September 2026 — duty rises 1p to 53.95p per litre.
- 1 December 2026 — a further 2p takes it to 55.95p per litre.
- 1 March 2027 — a final 2p lifts it to 57.95p per litre.
The March 2027 step is the symbolic one: per the RAC, 57.95p is the pre-2022 rate, so once it lands the 5p relief is fully unwound.
Then comes the structural change. From April 2027, fuel duty is set to rise annually in line with RPI inflation, according to the OBR — ending a freeze that has been in place since 2011. Arguably that matters more than the 5p itself: the freeze was one of the most durable tax giveaways in British politics, and its scheduled end means pump taxation rises by default rather than by annual decision.
What it adds to a tank of petrol or diesel
The full reversal — all 5p, once the March 2027 step takes effect — adds roughly £3.30 including VAT to a 55-litre fill-up, according to Fuelwise and CalcIt estimates. Because VAT is charged on top of duty, every penny of duty costs drivers slightly more than a penny at the till. September's first step is a modest slice of that £3.30; the December and March steps do the heavier lifting.
For the Treasury, the sums are considerable. Phasing out the cut and moving to RPI indexation is forecast to raise £2.4bn in 2026-27, then around £900m a year thereafter, per the OBR and Budget documents.
It also lands in a year that has already been expensive for drivers. The VED rises in April 2026 pushed up UK car tax across the board, and a steadily rising fuel duty line will only sharpen the pay-per-mile road pricing debate that refuses to go away.
The honest assessment
As tax rises go, this is about as gently as it can be done — staged, pre-announced, and small at each step. Restoring a rate that was always badged as temporary, with a year's notice, is hardly an ambush.
The less comfortable reading is that the direction is now one-way. By March 2027 the full 5p is back; from April 2027, RPI indexation means the duty line rises every year without anyone having to announce it. A low-mileage driver in an efficient supermini will barely notice September's penny. A high-mileage commuter, a van operator or anyone running a thirsty SUV will feel the cumulative effect by next spring. The cut was always a loan. Repayment starts on 1 September.
The questions buyers actually ask
When exactly does fuel duty go up, and by how much? On 1 September 2026, duty rises 1p to 53.95p per litre. A further 2p follows on 1 December 2026, taking it to 55.95p, and a final 2p on 1 March 2027 takes it to 57.95p — the pre-2022 rate.
What does the full reversal cost per fill-up? Roughly £3.30 including VAT on a 55-litre tank once all three steps have landed, per Fuelwise and CalcIt estimates. September's rise alone is only a fraction of that figure.
Do the rises stop in March 2027? No. From April 2027, fuel duty is expected to rise each year with RPI inflation, per the OBR, ending the freeze in place since 2011. A future Budget could change course, but as of mid-2026 that is the stated plan.
Key takeaways
- Fuel duty rises 1p to 53.95p per litre on 1 September 2026 — the first stage of reversing the temporary 5p cut.
- Two further 2p steps follow: 55.95p on 1 December 2026 and 57.95p on 1 March 2027, restoring the pre-2022 rate.
- The full reversal adds roughly £3.30 including VAT to a 55-litre fill-up.
- From April 2027, duty is expected to rise annually with RPI inflation, ending a freeze dating back to 2011.
- The changes are forecast to raise £2.4bn in 2026-27, then around £900m a year after that.
Sources & further reading
- HM Treasury Autumn Budget 2025 documents and OBR forecasts, with RAC, Deloitte, Fuelwise and CalcIt analysis, November 2025 – August 2026
Figures, prices and policy details were current at the last-updated date above. Automotive pricing, incentives and regulations change frequently — verify time-sensitive details with the linked primary sources. Read our editorial policy and fact-checking standards.
